More Canadians want to see the impact of their money now even if it means leaving a smaller inheritance later
When I think about how retirement planning has evolved in recent years, one of the biggest shifts I’ve seen has nothing to do with investment returns or market performance.
It’s about families and specifically how parents are choosing to support their adult children long before they’re gone. I can’t count how many conversations I’ve had lately that begin with, “Carlo, how can we help our kids get into the housing market?”
Real estate prices may have cooled a bit, but affordability remains a massive challenge for younger Canadians. Parents, many of whom are sitting on sizable portfolios or paid-off homes, feel a strong emotional pull to help.
And who can blame them? They want their kids to succeed, to own something, to feel stable. But as a planner, it often puts me in the difficult position of having to deliver the hard truth that generosity can come at the expense of your own retirement.
I’ve had clients ready to gift $100,000 to each of their three children. That’s $300,000 out of a retirement portfolio that was designed to sustain them for decades.
Sometimes the plan can absorb that but sometimes it can’t. When it can’t, I have to explain that this level of early gifting could jeopardize their long-term cash flow. Those are tough conversations, because as a parent myself, I understand the instinct. But my duty is to protect the client’s financial well-being, not their children’s aspirations.
Giving while living
The trend toward “giving while living” also changes the traditional idea of inheritance.
Instead of leaving a lump sum through a will, more parents are distributing smaller amounts while they’re still here, helping with down payments, tuition, or mortgage pay-downs. And there’s something beautiful about that.
I recently worked with a couple who had built a substantial estate. If they waited until they were gone, their children would have inherited roughly $5 million. Instead, they chose to gift some of it early, reducing that future legacy to $3.5 million.
That’s still a significant sum, but they were able to watch the impact of their generosity in real time. They got to see their kids’ relief, their gratitude, their progress. There’s emotional value in that that no tax receipt can match.
When considering taxes, gifting while alive can actually offer some strategic advantages.
For instance, assets held outside of registered accounts are typically subject to probate when passing through an estate. But when clients gift those assets early, they pay any applicable capital gains tax up front, at a rate we can manage by keeping withdrawals within their marginal tax bracket.
We can also use tools like Tax-Free Savings Accounts to transfer wealth efficiently. Parents can name their children as beneficiaries on those accounts, bypassing probate altogether. The key is structuring it intelligently so the generosity doesn’t backfire.
Uncomfortable conversations
Money and family don’t always mix smoothly and I’ve seen far too many situations where wills or gifts create resentment among siblings.
That’s why we encourage clients to hold family meetings, ideally facilitated by their advisor, to explain their intentions clearly while they’re still here to answer questions. It’s not always a comfortable conversation, but it’s far better than leaving loved ones to fight it out later.
These conversations are especially important for blended families, which are increasingly common. Multiple marriages, stepchildren, and differing expectations can create real tension if not addressed ahead of time.
And then there’s the other side of the coin, the clients who have to tell their children: “There may not be anything left.”
We’re living longer than ever, and the cost of long-term care continues to rise. Some retirees are living 25, 30, even 35 years beyond their last day of work. For many, the goal isn’t leaving a legacy, it’s ensuring they can live comfortably without being a financial burden on anyone.
Interestingly, most children I meet with are supportive of that. They tell their parents: “Spend your money. You earned it.” But there are exceptions such as younger generations who expect an inheritance and adjust their own financial habits accordingly. That’s a dangerous mindset. Knowing you’ll inherit money can rob you of motivation. I’ve seen it happen.
Doing good
One positive trend, though, is the growing emphasis on philanthropy.
Many of my clients are using their wealth not just to support family, but to do good in their communities. With tools like donor-advised funds and charitable trusts, they can give in ways that are tax-efficient and enduring.
They can donate appreciated securities, avoid capital gains, receive a tax credit, and support causes that matter to them, all while reducing future estate taxes. It’s a win-win-win: for them, for their heirs, and for society.
If I had to identify one common misconception about retirement, it’s that people assume it’s going to be an endless vacation; a “happily ever after” chapter where every day feels like Saturday.
The truth is that most retirees eventually find themselves looking for purpose again. I’ve had many clients retire, only to come back a year later saying, “Carlo, I got a part-time job because I was bored.” And that’s okay.
Retirement isn’t the finish line. It’s a transition — one that’s deeply personal, full of new challenges and new possibilities.
In the end, the way Canadians approach retirement today reflects a larger cultural shift. We’re redefining what it means to live well, not just for ourselves, but for our families and communities.
It’s no longer about simply stopping work or leaving a fortune behind, but about staying engaged, being intentional, and using our resources - financial and otherwise - to make the years ahead as meaningful as possible.
Carlo Cansino is a Senior Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact him at (905) 771 - 5200 or visit https://tmfg.ca/ to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and the Canadian. Investment Regulatory Organization.
